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Safeway Inc. (SWY)

  • Fri, Jan. 30, 9:09 AM
    • Safeway (NYSE:SWY) and Albertsons complete their merger after working out a deal with the FTC to divest stores.
    • The combination of the two chains created a network of 2,230 stores and 27 distribution facilities in the U.S.
    • Safeway shareholders will receive $34.92 in cash consisting of funds from the acquisition by Cerberus, real estate asset sales, and dividends.
    • Shares of SWY will no longer trade on the NYSE.
    • Previously: Safeway and Albertsons work out deal with FTC (Jan. 27 2015)
    | 1 Comment
  • Tue, Jan. 27, 2:07 PM
    • The FTC approved the merger between Safeway (SWY +0.4%) and Albertsons after the companies agreed to shed 168 stores.
    • The local markets impacted by the store sales are in Texas, Arizona, California, Montana, Nevada, Washington, Oregon, and Wyoming.
    • Buyers for the stores have already been lined up, led by private Haggen Holdings which will snap up 146 Albertsons and Safeway outlets.
    | 1 Comment
  • Wed, Jan. 21, 7:37 AM
    • Grocery store chains stand to lose from the decision by the Supreme Court to reject a case on the swipe fee cap, according to analysts.
    • Almost 70% of purchases in grocery stores are paid for by consumers with credit or debit cards.
    • Operating margins in the industry tend to be very low.
    • In some cases, the interchange fee which goes to the processing bank is higher than the profit margin on the grocery item.
    • Trade groups repping the grocery industry wanted a cap of $0.07-$0.12, instead of the $0.21 approved by the Fed.
    • Previously: Supreme Court passes on looking at swipe fees cap (Jan. 20 2015)
    • Grocery store stocks: IMKTA, NGVC, TFM, SFM, SWY, DEG, SFS, WFM, SVU, KR, CASY, WMK, VLGEA.
    | Comment!
  • Fri, Jan. 9, 8:35 AM
  • Dec. 22, 2014, 1:48 PM
    • The breakdown of stores to be divested by Safeway (SWY +0.6%) and Albertsons leans to the Albertsons side.
    • 111 Albertsons outlets are scheduled to be sold and 57 Safeway-owned stores (Safeway, Tom Thumb, Vons) will be unloaded.
    • Analysts think the level of store reductions will be enough to satisfy regulators.
    • Previously: Safeway, Albertsons to sell 168 stores to gain antitrust approval for merger (Dec. 20, 2014)
    | Comment!
  • Dec. 20, 2014, 9:05 AM
    • Safeway (NYSE:SWY) and Albertsons have agreed to sell 168 stores across eight states, mostly in the western U.S., in a bid to gain merger approval from U.S. antitrust regulators.
    • The companies, which together own ~2,400 stores, say they expect the buyers to hire most, if not all existing store workers.
    • The biggest beneficiary of the deal appears to be the Haggen chain, which is purchasing 146 stores and adding ~$750M in sales.
  • Dec. 15, 2014, 9:10 AM
    • Safeway (NYSE:SWY) declares $0.23/share quarterly dividend, in line with previous.
    • Forward yield 2.66%
    • Payable Jan. 2; for shareholders of record Dec. 26; ex-div Dec. 23.
    | 1 Comment
  • Dec. 6, 2014, 10:24 AM
    • Grocery delivery upstart Instacart is raising $100M from new and old investors at a pricing which gives the company a $2B valuation and plenty of cash to fund expansion.
    • Sequoia Capital and Andreessen Horowitz have added to their original investments, reports Re/code.
    • Instacart, which was started by a former Amazon supply chain engineer, delivers groceries from participating stores to consumers in larger markets within an hour.
    • Major retail chains such as Whole Foods Markets (NASDAQ:WFM), Kroger (NYSE:KR), and Costco (NASDAQ:COST) are participating in Instacart's expansion - perhaps playing a little defense against Amazon Fresh (NASDAQ:AMZN) which also has growth plans.
    • What to watch: Instacart's simple business model of a personal shopper army and vibrant website contrasts sharply with the distribution/branding might of Amazon Fresh (AMZN), but could end up in the same razor-thin margin predicament ($5.99 for one-hour delivery?). Meanwhile, old-school Kroger (KR) has recorded 44 straight quarters of positive comps and just raised its full-year profit guidance off of solid store execution.
    • Related grocery stocks: SVU, SWY, RNDY, SFM, OTCQB:PUSH, TFM, WMT.
  • Oct. 28, 2014, 11:32 AM
    • Redbook notes the timing of Halloween on a Friday is giving a boost to merchandise sales related to the holiday as more consumers prep for parties and celebrations.
    • Both Redbook and ICSC's weekly read on retail store sales showed year-over-year improvement with Halloween sales a factor.
    • Stores have also been extending their hours to draw in more shoppers.
    • Looking for a Halloween boost: DLTR, DG, FDO, KR, SVU, SWY, WMT, TGT, HSY, KRFT, CVS, RAD, WAG, MDLZ.
  • Oct. 15, 2014, 6:44 AM
    • Safeway (NYSE:SWY): Q3 EPS of -$0.09 may not be comparable to consensus of $0.16.
    • Revenue of $8.31B (+2.7% Y/Y) misses by $140M.
    • Press Release
  • Oct. 6, 2014, 7:57 AM
    • Online grocery store sales will grow to $80B-$123B per year by 2023, according to a presentation by Brick Meets Click.
    • The explosive growth is expected to be led by the popularity of the service in major cities such as New York and San Francisco.
    • Related stocks: KR, SWY, SVU, WFM, AMZN, WMT.
  • Sep. 23, 2014, 8:10 AM
    • Halloween spending by consumers in the U.S. is expected to rise to $11.3B this year, according to an estimate from ICSC.
    • Discount stores (DG, DLTR, FDO) and grocery stores (KR, SVU, SWY, WMT, TGT) are expected to keep a lion's share of the costume spend with shoppers indicating price and the ability to touch costumes as the biggest factors in deciding where to shop.
    • Halloween is one of the few calendar events where online has stayed more of a bit player with only an estimated 7% share of purchases.
  • Sep. 22, 2014, 7:50 AM
    • Safeway (NYSE:SWY) announces it's soliciting consent for holders of senior notes due in 2016, 2017, and 2019 for a proposed amendment relating to the bonds.
    • The company wants to strike the obligation to purchase the bonds after closing its merger with Albertson's.
    • A consent fee would be paid to holders under the proposed amendment.
    | Comment!
  • Aug. 22, 2014, 9:10 AM
    • Safeway (NYSE:SWY) declares $0.23/share quarterly dividend, in line with previous.
    • Forward yield 2.66%
    • Payable Oct. 9; for shareholders of record Sept. 18; ex-div Sept. 16.
    | Comment!
  • Aug. 14, 2014, 1:01 PM
    • The dollar store group (DLTR, FDO, DG, BIG) and select grocery store chains (KR, SWY, SVU) are slight out-performers on the day after Wal-Mart's (WMT +0.1%) Q2 report indicates it lost some market share in the U.S.
    • Edward D. Jones analyst Brian Yarborough attributes the limp sales growth for Wal-Mart in the U.S. to the retailer's inability to nab the quick "milk and bread" runs by consumers due to the massive size of its stores.
    • That line of thought is consistent with the stronger growth numbers put up lately by convenience store operators such as Circle K (OTCPK:ANCUF), 7-11, Pantry (NASDAQ:PTRY), BP Connect (NYSE:BP), On the Run (NYSE:XOM), Speedway America (NYSE:MPC), Kwik Shop (NYSE:KR), and Qwiktrip.
  • Jul. 3, 2014, 1:06 PM
    • Safeway (SWY) has reportedly put its real estate division up for sale.
    • Bids as high as $1B are expected to come in by the end of the month.
    • The move has been anticipated with plenty of financial engineering going on behind the scenes at Safeway with Cerberus in the mix.
    | Comment!
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Company Description
Safeway Inc operates a retail food and drug chain in the United States. The Company also has a network of distribution, manufacturing, and food processing facilities.
Sector: Services
Industry: Grocery Stores
Country: United States